Application And Product Engineering Services Leader Luxoft Posts 48% Year-End Growth

New York and Moscow, May 6, 2008 – Luxoft, a global provider of high-end software application and product engineering services to clients such as Boeing, Deutsche Bank, IBM, UBS and others, today announced impressive growth for FY07 ending March 31, 2008, finishing the year at $106.7 million.

Luxoft Holding posted 48 percent growth over FY06, resulting from new work with existing customers as well as a number of new customer acquisitions. Revenues were $106.7 million USD, up $34.6 million USD from the previous fiscal year. Of the total revenues, $97.1 million USD was from Luxoft International (up from $64.4 million USD), and $9.6 million was for Luxoft Consulting (up from $7.7 million USD). Luxoft International offers the full spectrum of high-end IT outsourcing while Luxoft Consulting serves as Luxoft’s U.S.-based IT consulting arm.

“In spite of recessionary news and increased client competitive pressures, Luxoft continues its strong, upward path as a global leader in application and product engineering services and as a reliable technology partner to its clients,” said Dmitry Loschinin, Chief Executive Officer and President of Luxoft.

Expanded Global Delivery Capabilities and Engagement Models

Over the past year, Luxoft has added over 30 new clients to its roster. Among them are:

  • Alcatel, world's biggest telecommunications industry player.
  • New York Media, the publisher of the weekly New York magazine, the website nymag.com, and the twice-yearly publications New York Weddings and New York Look.
  • Sabre Holdings, a leading retailer of travel products and provider of distribution and technology solutions for the travel industry.

Luxoft also expanded its global reach, celebrating its one-year anniversary operating in Vancouver, Canada. The success of Luxoft Canada is the result of its deep expertise in distributed Agile, proven company-wide engagement management excellence and the ability to provide nearshore efficiency for North American clients while also offering rapid scalability through access to deep resource pools across Luxoft’s global locations. Luxoft Canada is also home to the company’s global Software Performance Practice, which is helping clients maximize applications and systems performance.

Other expansion efforts included new development centers in Odessa and Dnepropetrovsk, Ukraine, as well as this month’s launch of Luxoft Vietnam. The opening of the Vietnam delivery center marks Eastern Europe’s first outsource provider in Southeast Asia and enhances Luxoft’s ability to provide worldwide clientele with the optimal mix of nearshore, offshore and onsite delivery models. Luxoft also organized its delivery structure around industry expertise centers and introduced a number of value-added offerings, such as architecture, security, performance, and process consulting services that help enterprises transform their business into a high-performance, secure and reliable working environment. These moves are a natural evolution of Luxoft’s proven track record for tackling complex software development engagements and helping customers stay ahead of the market curve.

Spotlight on Luxoft’s Engineering Excellence

Luxoft’s engineering excellence continues to earn industry honors. Late last fall, Deutsche Bank, one of Luxoft’s leading financial industry clients, was awarded an Applied Innovation Award for the ground-breaking CRM project it developed with Luxoft. The industry award is the first global award to recognize best practices in co-innovation and strategic sourcing and was sponsored by the International Association of Outsourcing professionals (IAOP), Wipro, the IT Association of America (ITAA) and Forbes.

Luxoft was also the recipient of Frost & Sullivan’s 2007 Global Outsourcing Growth Excellence & Customer Value Leadership Award and was a finalist in the Outsourcing Center’s Outsourcing Excellence Awards sponsored by Everest Group and Forbes Magazine.

FY07 also marked Luxoft’s status as the only CIS company to earn the title “partner” from Carnegie Mellon University’s Software Engineering Institute (SEI). Partnership status allows Luxoft to conduct CMMI® certification training, provide consulting services in the area of CMMI® and perform official CMMI appraisals. It was also the first European company to be appraised at the highest process maturity level, known as Level 5, of the latest version of CMMI-DEV, a process improvement approach aimed at driving best practices in product and service.

“Luxoft is known for its rock solid execution and quality solutions consistently delivered by seasoned engineers. Now, with the expanded global footprint, our clients are able to use our services in a variety of locations both near and far continuing to get the high quality work that defines Luxoft,” said Loschinin.

About Luxoft

Luxoft Holding is an emerging global leader in application and product engineering services that helps enterprise IT organizations and software vendors navigate the rapidly changing technology landscape and build powerful, flexible and future-proof solutions. Unlike traditional outsourcing providers that emphasize volume and labor arbitrage, Luxoft builds lasting partnerships with its clients based on the culture of engineering excellence, professionalism, and innovation. Among Luxoft’s satisfied customers are such market leaders as Boeing, Deutsche Bank, UBS, Dell, IBM, Sabre, Alcatel, Areva and others.

Luxoft offers global delivery capability through its network of state-of-the-art delivery centers in North America, Central & Eastern Europe and Asia. Luxoft’s customers benefit from the right mix of skills, resources, best-of-breed processes and methodologies, and a choice of engagement models.